Buying some gold calls and treasury puts is the call. It seems like such a ridiculous rumor that you won't pay much for the bet, and can take it off cheaply the day or two after the meeting on the 17th.
and then there's this ... markets pricing in a monster rally between now and sept. expiration??? http://www.youtube.com/watch?v=-6-RO25w9d8
He said big call buyers in the 45/40 VIX..which means a spike in the VIX, which means markets would be going down.
Yes, but this assumes the administration gives a damn about public opinion. Their moves as of late would say that they don't. You can play the pass line all night long, sometimes you gotta' put a buck or two on the boxcars just to liven things up.
I knew there was something wrong with what he wrote. I think anything below 20 on the VIX is a time to start buying calls. The VIX could easily jump to 30+ within a day or 2 on a market downturn.
By the way I like your 'investment plan' on the other thread in econ ... buy out of the money puts financed by income to hedge for shocks. My alternative suggestion is something like 30 year treasuries 80%, 10% gold or silver bullion, the other 10% in gold/commodity stocks and no derivatives. The idea here being that deflation reigns supreme with the equity/leverage/commodity exposure to 'hedge' just in case that doesn't work out. Its a 'dumb' zero management portfolio based on preserving principle and maximizing income. Reinvest the income in either the same allocation, or towards a gradually increasing equity exposure.
This mortgage bailout will happen. Why would Obama "leave money on the table"? Do you "leave money on the table"? It can be sold as a humane way to relieve pressures on American families, it helps Obama, and the debt can all be thrown into the future. Any proposal that has these three ingredients will become reality. Get ready!!